Lillian Meyers, Enrolled Agent for 30+ years, EA of Green Valley Tax Services, Inc. has always provided information to help with tax authority audits, educated our clients, and has a passion to provide the best Tax Planning, and strategies for our clients.
Tax season is one of the most critical times for businesses and individuals. While it may seem intimidating, especially for those who haven't had to deal with taxes before, it's no longer straightforward and easy.
If you are not familiar with tax preparation or legal issues in general, it can be challenging to know what to expect when you go into a random tax preparation center to meet with a representative or preparer, especially if they are not properly qualified.
When it comes to tax preparation and representation, it's essential to have a trusted professional who can guide you through the process and ensure that you comply with all the laws and regulations. An Enrolled Agent (EA) is such a professional. What exactly is an EA, and how can they help you with your tax needs?
What is an Enrolled Agent?
An Enrolled Agent is a tax professional who has passed a rigorous examination administered by the IRS. They are authorized to represent taxpayers before the IRS. They have unlimited rights to practice before the agency, including the ability to represent clients during audits, collections, and appeals. "Americas Tax Experts"
EAs must also complete yearly continuing education courses to stay current on tax laws and regulations. This means that they are experts in the tax code and can provide valuable guidance and advice to individuals and businesses.
In addition to being able to represent you during an audit, EAs have access to information about your tax return which allows them to provide guidance for future years based on your individual circumstances as well as help you plan for retirement or other life events such as buying a home or paying for college expenses.
Being an enrolled agent is a career that requires dedication and challenging work. These individuals have developed critical skills to help individuals and businesses navigate the complex and confusing world of the American tax code. To be qualified, they must have:
- Passed two exams administered by the IRS: one focused on federal tax law and another on state tax law (or equivalent).
- Have at least three years of experience working in public accounting or for a non-profit organization that serves low-income taxpayers.
- Have passed a background check conducted by the IRS to ensure they are not convicted felons (this includes being flagged as having filed fraudulent returns).
- Have work experience with an EA in a firm or as a mentor.
This ensures the enrolled agent working with your taxes has the necessary experience to offer quality advice and act on your behalf in more complicated situations.
How can an Enrolled Agent help you?
An Enrolled Agent has the most comprehensive education of any tax professional. They are licensed by the Treasury Department and can represent you in all aspects of your tax situation. This includes audits, collection, disputes, and appeals with the IRS and planning for your taxes in advance.
One of the main ways an EA can help you is by preparing and filing your taxes. They can review your financial information, identify deductions and credits, and ensure that your return is accurate and complete. They can also help you plan for taxes in the future by providing advice on how to minimize your tax liability and take advantage of all the deductions and credits available to you.
Another vital way an EA can help you is by representing you before the IRS. If you're facing an audit or other enforcement action, an EA can act as your advocate and navigate the IRS system on your behalf. They can also help you resolve disputes and negotiate payment plans if you owe taxes. Their knowledge and experience can be invaluable in these situations and help you achieve the best possible outcome.
Few people understand the tax code better than an enrolled agent. When you think about how many new deductions and beneficial tax laws are passed every year, you need someone to guide the ship, so you don’t get lost. Politicians love to enact new laws that seem beneficial or detrimental to the national deficit, and each one has massive repercussions on our individual incomes and business success. An EA is one of the most powerful ways to ensure you maximize your pre-tax wealth without falling into legal pit traps.
The importance of the right tax preparer
Choosing the right tax preparer is crucial to a successful tax filing. You have many options, so how do you go about choosing?
Reputation matters a great deal to these individuals. Even the slightest implication of fraud or harm to a client can result in them losing their credentials with the IRS. Read the online reviews for any tax preparation firm you wish to work with beforehand to see if anyone has reported them for negligence, misrepresentation, or fraud.
You may also want to check out organizations like the National Association of Enrolled Agents (NAEA) or state-relevant agencies like the California Society of Enrolled Agents (CSEA). These are nationally recognized groups that only include members either on their way to becoming qualified EAs or already experienced agents who can help you.
How can an Enrolled Agent help with representation?
Going through an audit or managing some tax error is challenging because a tiny mistake in communication with the IRS can lead to significant fines and fees. You don’t want to unwittingly say something, not include important information, or fill out the wrong paperwork – especially when you need as much liquid cash flow as possible in your business.
Working with a team of EAs ensures you have an experienced guide to managing all these circumstances. They will clearly communicate what will happen next and prepare you and your documents to achieve a fair and transparent outcome.
Part of an EA’s role is to ensure that their clients are not being taken advantage of by the IRS or other agencies such as state revenue departments or financial institutions. Unfortunately, when it comes to unpaid taxes, damaging procedures like attempting to collect unpaid taxes via various laws allow for the automatic levy or seizure of assets without prior notice. That can dramatically transform your personal financial situation in a heartbeat. The fact is you need protection.
Conclusion
Enrolled Agents play an essential role in tax preparation and representation. They are qualified professionals who can help you with all your tax needs, including planning for the future and filing your returns. The right EA will be able to work closely with you to ensure everything is done correctly from start to finish. This peace of mind is priceless when it comes time for filing!
Our Green Valley Tax Services team has spent years in the business of representing clients through all kinds of complex IRS situations. Under the leadership of our founder, Lillian Meyers, we can ensure the best possible service from a qualified and experienced enrolled agent.
Contact our team for aid if you need some simple tax preparation that you cannot manage due to time constraints or are facing a difficult situation due to an upcoming audit. We are more than happy to look at your situation and develop a plan of action that minimizes your exposure to future challenges. With a bit of proactive help, you can best protect your personal finances, family resources, and business future.